Tesla is fighting with the Swedish unions. Here’s what you need to know.

Weeks after mechanics working for Tesla in Sweden left their jobs in late October, members of other unions across the country and in Denmark and Norway have joined the mechanics in sympathy by refusing to provide services to Tesla to pressure the automaker set up to sign a collective agreement with his Swedish workers.

The strike in Sweden, by 120 mechanics represented by the IF Metall union, was the first workers’ action against Tesla, the American electric vehicle manufacturer founded twenty years ago and led by Elon Musk. The strike has spread beyond Sweden after dock workers in Denmark said they would stop unloading Tesla vehicles at ports across the country.

Tesla doesn’t make cars in Sweden, and the country is a relatively small market for the automaker. Not all technicians from the seven service centers are participating in the strike. But growing support from unions, including dock, electrical and postal workers, has put pressure on the automaker to take legal action to force the supply of license plates. Temporary rulings have been issued in two lawsuits, but final decisions are still pending.

Unions say Tesla is flouting the Swedish tradition of collective agreements. About 90 percent of Swedish workers are covered by these agreements, which apply to non-union employees and define working conditions across industries. They have a long history in the Nordic countries and are widely seen as crucial for maintaining social cohesion and high living standards.

The strikers and the unions taking up their case are “fighting an incredibly important battle right now,” Jan Villadsen, president of the 3F Transport union that represents Danish dock workers, said in a statement. “Even if you are one of the richest in the world, you can’t just make your own rules,” he said, referring to Mr Musk.

But Tesla’s Model Y is a hugely popular SUV in Sweden and tops the list of electric cars sold this year. Some industry officials in Sweden worry that a protracted labor battle could hurt business at repair shops that have been forced to stop servicing Tesla vehicles.

What is at stake for the union?

IF Metall wants Tesla to start discussions about adopting a collective labor agreement. The pact would lay the foundation for wages and benefits for all, although only about 70 of Tesla’s 120 mechanics in Sweden belong to the union.

The union believes that most Tesla members are staying home, but admits that “some are unfortunately at work despite the strike.”

At least 10 other unions have joined in refusing to clean Tesla’s facilities, maintain its battery chargers or paint and repair its vehicles. All told, about 150 members of IF Metall and other unions are involved in the strike in one way or another, the union said.

Union leaders see the blockade against Tesla as a blockade that defends the Swedish model, a way of life that has defined the country’s economy for decades. The focus is on cooperation between employers and employees to ensure that both parties benefit equally from a company’s profits.

But organized labor is not as strong in the emerging green industries, and union leaders in Sweden are concerned that if these jobs remain ununion, they will have lower wages and fewer benefits.

How has Tesla responded?

Tesla, which started selling cars in Sweden in 2013, did not respond to repeated requests for comment. But Mr. Musk has made it clear more than once how he feels about organized labor, most recently on the DealBook Summit in New York City.

“I don’t agree with the idea of ​​unions,” Musk said, then accused them of creating “a lords and peasants situation” within the workforce and fueling discontent between managers and workers. “I think unions naturally try to create negativity within a company,” he said.

Tesla has insisted on following Swedish labor laws but has chosen not to sign a collective agreement. None of the service centers have been forced to close due to the strike.

When postal workers stopped delivering license plates to Tesla, the company sued the government agency that produces the license plates and PostNorden, the postal company the government uses to deliver them. Postal Service union members refuse to deliver all Tesla mail, including license plates. Tesla argued that the agency should provide the license plates directly to the automaker and demanded that the Postal Service surrender the license plates it had.

At the end of November, a judge ruled that the agency had to make the license plates available to Tesla, but later overturned that ruling, leaving the company dependent on PostNorden.

How do employees in other countries get involved?

Solidarity between unions in the Nordic countries is strong, and IF Metall has been in discussions with neighboring labor groups. One tactic is simply blocking new Tesla vehicles from entering the country: In Denmark, officials from the 3F Transport union, which represents dock workers and drivers, said they would stop unloading Tesla vehicles headed to Sweden and which arrived in Danish ports. They join Swedish dock workers who have refused to unload the vehicles since mid-November.

The carmaker has tried to get around the dock workers’ blockade by shipping cars from neighboring countries to Sweden, but once Danish dock workers join the strike, one easy access point – the bridge connecting Copenhagen to Malmö in Sweden – will be closed. Norway’s Fellesforbundet federation of trade unions said it would boycott the transport of cars to Sweden. Unions in both Denmark and Norway said the boycott would only target cars destined for Sweden.

Do people in Sweden support the strike?

The support is split. Some see the strike as an important statement about their way of life, and others say the union has gone too far and is promoting an unwinnable and, for some, unjust struggle.

The Model Y ranked as Sweden’s best-selling electric car in November, reflecting continued demand despite the strike.

An official of an association representing local car repair shops has also expressed concern that some of its members are being hit hard by the sympathy strikes, preventing them from carrying out repairs.

“We see that it is an unfortunate situation that, in the event of a prolonged conflict, threatens to endanger Swedish employment,” said Hanna Alsen, head of negotiations at the automotive industry employers’ association.

How long can the strike last?

Strikes are rare in Sweden. Often the threat of a strike is enough to get negotiations started. IF Metall says it has been trying to get Tesla to the negotiating table for years.

The union has said it is prepared for a protracted fight but would end the action if Tesla agreed to discuss a collective agreement.

At the same time, Tesla remains the only major American automaker without union representation. The company has remained resistant to unions even in European countries with strong traditions of organized labor, including Germany, where Tesla opened a factory in 2022.

Esben Pedersen, who helped bring Tesla to Europe, said the automaker may have painted itself into a corner in Sweden, adding that the strike is about a bigger issue than just wages and working conditions.

“It’s about a cultural clash between two different systems: the Nordic labor market model, which emphasizes collective bargaining, and the Silicon Valley ethos of agility in pivoting, coupled with Elon’s focus on vertical integration,” he said. “Even if he offers compensation that exceeds requirements, the strike will likely continue until Tesla agrees to a collective bargaining agreement.”